written by: HARRY HERSKOWITZ

Part I - The Table of Contents to the Disclosure Statement

The New Condominium Act which comes into force on May 5th, 2001, provides for extensive disclosure of relevant information to purchasers of new residential or non-residential condominium units (ie. irrespective of the type or intended use of the unit), in order to help them to better understand and appreciate the nature, character, attributes, amenities and costs associated with the condominium and the particular unit that they are proposing to acquire. Specifically, in the context of the purchase of a registered or proposed condominium unit from the developer of the condominium project (defined in the legislation as the “declarant”), the agreement of purchase and sale will not be binding upon the purchaser until the declarant’s delivery of a current disclosure statement. In turn, the New Condominium Act stipulates that the disclosure statement must contain a table of contents located at the beginning of same, in order to facilitate the purchaser’s ability to locate specific information which, in the legislature’s view, is of particular relevance or concern to prospective unit purchasers of new condominiums.

The precise form and substance of the table of contents is prescribed by the regulations to the New Condominium Act, and essentially it indicates whether the condominium’s declaration, by-laws and rules (or the proposed declaration, by-laws or rules), or any other materials included with the disclosure statement, deal with the following matters, and if so, also indicates where such matters are addressed (in terms of the page number or paragraph number of the disclosure statement), namely:

1. A statement indicating,

a) whether the existing or proposed condominium is or will be a leasehold condominium corporation (ie. a condominium developed on leased land, having a minimum term of 40 years less a day, and a maximum term of 99 years), or a freehold condominium corporation; and

b) if the existing or proposed condominium is a freehold condominium, the type of freehold condominium corporation that it is or will be (ie. a standard condominium corporation, a vacant land condominium corporation, a common elements condominium corporation, or a phased condominium corporation).

2. The condominium property (or any portion thereof) is or may be subject to the Ontario New Home Warranties Plan Act, or the proposed units and common elements are enrolled (or are intended to be enrolled) with the Ontario New Home Warranty Program, in accordance with the regulations made under said legislation.

3. A building on the condominium property, or a unit (or a proposed unit) in such existing or proposed condominium, has been converted from a previous use.

4. One or more units (or proposed units) may be used for commercial or other purposes not ancillary to residential purposes.

5. A provision exists with respect to pets on the condominium property (or the proposed property).

6. There exist restrictions or standards with respect to the occupancy or use of units (or proposed units) or the use of common elements (or proposed common elements) that are based on the nature or design of the facilities and services on the property, or on other aspects of the building(s) located on the property.

7. A statement of the portion of units (or proposed units) to the nearest anticipated 25 per cent, that the declarant intends to lease.

8. A statement whether the proportion, expressed in percentages, of the common interest appurtenant to any unit (or proposed unit) differs in an amount of 10 per cent or more from that appurtenant to any other unit (or proposed unit) of the same type, size and design.

9. A statement whether the proportion, expressed in percentages, in which the owner of any unit (or proposed unit) is required to contribute to the common expenses, differs in an amount of 10 per cent or more from that required of the owner of any other unit (or proposed unit) of the same type, size and design.

10. A statement whether any unit (or proposed unit) is exempt from a cost attributable to the rest of the units (or proposed units).

11. Part or the whole of the common elements (or the proposed common elements) are subject to a lease or licence.

12. A statement whether parking is allowed in or on a unit, on the common elements, or on a part of the common elements of which an owner has exclusive use, and a statement of any restrictions on parking.

13. Any other statement specified in the regulations made under the New Condominium Act.

In addition to the foregoing, Form 12 of Ontario Regulation 48/01, which prescribes the content and form of the table of contents, also requires that the following information be disclosed or addressed with respect to a “standard” condominium (ie. a condominium requiring the substantial completion of all buildings and structures comprising the condominium property, including the units, as a prerequisite to its registration), namely:

a) a statement as to whether there is an existing or proposed by-law establishing what constitutes a “standard” unit (ie. in terms of describing the level, extent or quality of finishes and/or fixtures installed within units of the same type, size and/or design, for insurance, maintenance and/or repair purposes);

b) a statement as to whether visitor parking is situate within the condominium property, and whether visitors must pay for parking;

c) a statement as to whether the declarant intends to provide any major assets and/or property (to or in favour of the condominium corporation), even though it is not required to do so;

d) a statement as to whether the condominium corporation is required to purchase any other unit(s), or any other assets or services, or is required to enter into any agreements or leases with the declarant (or any company related to, or associated or affiliated with, the declarant);

e) a statement as to whether the declarant (or any company related to, or associated or affiliated with, the declarant) owns land adjacent to the existing or proposed condominium property, and if so, a statement confirming the current use of such adjacent lands, a statement confirming whether the declarant has made representations respecting the future use of such lands, and a statement confirming whether any applications have been submitted to any governmental authority respecting the use of such adjacent lands; and

f) a statement as to whether the declarant has any knowledge of the condominium corporation’s intention to amalgamate with another condominium corporation, or whether the declarant intends to cause the condominium corporation to amalgamate with another condominium corporation.

The balance of the required information and documentation comprising the disclosure statement mandated by the New Condominium Act will be discussed in the next column.

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